1. How would you characterize the main economic, legal-political, and socio-cultural differences influencing the relationship between the partners in Shui Fabrics? What GLOBE Project dimensions would help you understand the differences in Chinese and American perspectives illustrated in the case?

Although Shui Fabrics pulled off a 5% ROI within 3 years, Rocky River Industries an American partner is ready to pull the plug on Shui. A 5% ROI is great for Chiu Wai the Chinese general manager Shui but not Ray who needs the company’s bottom line closer to 20%. Chiu is more interested in complying with legal-political standards than increasing Shui’s ROI. Since Shui is doing better than many Chinese companies, Chiu sees no need to be more competitive. Overall, China is ranked far lower on the Global Competitiveness Report 2007-2008 at 32 whereas the US ranks number 1 (Daft & Marcic, 2009). Rocky River in the US is much more economically developed than Shui Fabrics in China. According to a 2009 Gallup poll, the US was more likely to be an economic powerhouse in 20 years than China (Saad, 2009). Despite economic downfalls, the US is much more globally competitive than China.

Rocky River’s economic competitiveness is a source of friction for Chiu Wai who favors the Chinese political “status quo” over monetary growth. Chiu mistrusts Rocky River and may perceive any increased output as further “exploitation” since Chinese workers already earn far less than American employees. Both managers can agree that Shui cut labor costs for Rocky River, opened up a huge market, and overcame contentious US-Chinese textile trade negotiations (Daft & Marcic, 2009). However, with US tariffs and quota fluctuations and strict supervision by local authorities, Rocky River is starting to lose faith in continued economic progress.

Cultural differences also affects how much “say so” Ray has over Chiu at Shui. Chiu listens to Ray but does what local authorities dictate....

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...Ray Betzell, the general manager of a joint venture between Rocky River Industries and Shanghai fabrics Ind., was being torn between the two companies. After many years of production Rocky River’s President Paul Danvers wasn’t satisfied with the annual return of 5%. Chui Wai, deputy general manager, believed that Shui was generating just the right level of profit not too much and not too little. Although Chui Wai believed production and profits were well, his partner didn’t agree. Paul Danvers desired an annual return of around 20% based on the amount of years in service. During a phone conversation Ray Betzell and Paul Danvers discussed the production of the company and the output of that production. The investment in the company wasn’t producing sufficient profits. Paul mentioned that greater efficiency and incorporating sophisticated technology would allow Shui to reduce its workforce substantially and in return provide a better ROI (return on investment). After stating his alternative methods, he also gave the option of terminating his contract with Shui or everyone coming to an agreement on how to generate better ROI.
1. How would you characterize the main economic, legal-political, sociocultural differences influencing the relationship between partners in Shuifabrics? What GLOBE Project dimensions would help you understand the differences in Chinese and American...

...Rana, Erec C.
Management Dynamics
SHUIFABRICS: A CASE STUDY
I. PROBLEM
Low return on investment is the main problem of ShuiFabrics as to US standards. It has stuck to 5% for three years and the Rocky River President expects 20%.
II. OBJECTIVE
To increase the return of investment of ShuiFabrics to 20% or better.
III. ANALYSIS OF RELEVANT FACTS
1. ShuiFabrics is a 50-50 joint venture between the US textile manufacturer and the Chinese company.
Engaging in strategic alliances and partnerships is currently the most popular type of direct investment like a joint venture. The venture is to produce, dye and coat fabric for sale to both Chinese and international sportswear manufacturer.
2. Using the Global Leadership and Organizational Behavioural Effectiveness (GLOBE) Project Value Dimensions, the case presents the difference in perspective between the American and Chinese:
The American displays performance orientation whereby it places high emphasis on performance and rewards people for performance improvements and excellence. The American wants to see a better economic performance and expects higher profits, more than 20% ROI and not contented with 5% ROI. Tasked Oriented. One option taken was thinking of pulling the plug on...

...country for foreign businesses to invest in. Manufactures in China are growing fast in industrial and consumer product sold in the United States. Although the market is growing in China laws and regulations are becoming even stricter.
Doing business in another country takes time and research. To often management fails to understand that business values and behaviors done in the United States do not translate to the rest of the world (Daft & Marcic, 2011, p. 105). This could be an area that the president of Rocky River failed to research, and understand what business values his joint venture company ShuiFabrics believes in.
CULTURAL CHARACTERISTICS
There are cultural characteristics that influence organizations, those characteristic include language, religion, social organization, education and attitudes. Attitude is a big factor in the Rocky River and ShuiFabric joint venture, mainly understanding each other’s value. As noted in the textbook Understanding Management “Attitude toward achievement, work, and people can all affect organizational productivity” (Daft & Marcic, 2011, p. 111). Just as Paul Danvers doesn’t understand that his counter part Chui Wai is very pleased with the five percent return on investment, referring to attitude of the Chinese culture. Understanding each cultures cultural characteristic is key in a successful joint venture and business or partnership.
SOCIAL VALUE...

...ShuiFabricsShuiFabrics
By
Management
ShuiFabrics
Ray Btzell and Chiu Wai
In this case study, we will look at the difference between the American perspective on business and that of the Chinese. Ray Betzell is the American representative and Chiu Wai is the Chinese representative for the ShuiFabrics Company. Here is a brief background of the situation; the two gentlemen are in charge of this joint venture. Rocky River Industries is the American Company and Shangai Fabric Ltd. is the Chinese company involved. Ray Betzell has been the general manager for the past five years. Chiu Wai is the deputy general manager; this company is textile fabrics company that manufacturer’s sportswear.
What we will explore and try to understand in this paper are the differences in business practices or strategies between the United States and China. We will describe the perspectives of both men and the GLOBE Project value dimensions. We will try to pinpoint the most central issue at hand and why the issue is the most important. We will develop a strategy for addressing the situation that would be pleasing to the bosses. And lastly, explain the specifics of why the strategy would work over the status quo.
Let’s first look at what the company has accomplished so far. The company...

...employees and top management.
Case Study: ShuiFabrics
I. Statement of the Problem:
Rocky River Industries is thinking of cancelling tit’s joint venture with Shanghai Fabric Ltd., due to itsinefficient 5% ROI for the past three years, Rocky River Industries is expecting ShuiFabrics to 20% ROI.
ShuiFabrics was said to be inefficient due to its unsophisticated technology and Rocky River would like to reduce workforce by incorporating more sophisticated machinery to increase ROI to 20%.
II. Objectives
The objective of the problem is to determine possible solution to keep the joint venture of Rocky River andShanghai Fabric.
IV. Framework of Analysis/Evaluation of Alternative Actions:
Strengths (Internal to the organization)
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Shanghai Fabric contribution to the local economy
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Helps decrease unemployment rate in China
Weaknesses (Internal to the organization)
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Company generates just the right level of profit, and had been consistently at 5% ROI
Opportunities (External to the organization)
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Competitors are using more sophisticated technology that doesn’t require more workforces
Threats (External to the organization)
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Importation of products and services from America to China can also be localized
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Current US tariffs and quotas could change at any time
Strengths-Opportunities
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Upgrading or incorporating more...

...Describe the differences between Ray Betzell’s and Chiu Wai’s perspectives on ShuiFabrics’ ROI in terms of the GLOBE Project value dimensions.
ShuiFabrics is a joint venture between Rocky River Industries, an Ohio based company and Shanghai Fabric Ltd., of China. Ray Betzell, the general manager of ShuiFabrics along with deputy manager, Chui Wai, both share difference of opinions pertaining to the direction of the company. According to the case, Wai appeared very pleased with the overall direction that the company is headed in. Wai feels that the company has had a positive impact on the local government and it has also created jobs for a number of people in addition to boosting the economy (Daft, 2010).
Although Ray Betzell enjoyed his time in China, the case states that he was aware of the frustrations of Paul Danvers, the President of Rocky River Industries. Danvers was ecstatic that ShuiFabrics had cut Rocky River’s labor cost and it provided the company an opportunity to engage in the Chinese market. However, Danvers felt that since the merger was in existence for 3 years, a 5 percent ROI wasn’t acceptable. He felt that the numbers should have been in the 20 percent range at that particular time. He even went a step further in his displeasure by conferring to Betzell that he felt that it possibly time to sever ties with...

...ShuiFabrics: Critical Analysis of a Global Problem
Introduction
ShuiFabrics is a China based fabric company that is a 50%-50% joint venture between a Chinese company and U.S. Textile manufacturer. At present, it produces dye and coat fabric for both domestic as well as international market. There will be a discussion of differences between American and Chinese perspectives on ShuiFabrics' ROI by using the Global project dimensions. Along with this, a strategy will be also discussed to addressing the situation (2004-2013).
Difference between American and Chinese Perspectives
According to Chiu Wai's point of view, ShuiFabrics had a good balance in terms of global project value dimensions for the return on investment (ROI). It is because; ShuiFabrics was generated an appropriate level of profits "not too little and not too much" on its investment in global projects including joint venture between U.S. and Chinese companies. On the other side, Ray Betzell who is the general manager of joint venture between Shanghai Fabrics Industry and Rocky River Industries viewed that ROI of ShuiFabrics should be at least 20% as compared to 5% annual returns on investment in last year. In terms of globe projects value dimensions, there are some differences between the...

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ShuiFabrics
1. How would you characterize the main economic, legal-political, and sociocultural difference influencing the relationship between the partners in ShuiFabrics? What GLOBE Project dimensions would help you understand the differences in Chinese and American perspectives illustrated in the case?
Many of the local Chinese authorities viewed profits made by Western companies on Chinese soil as just one more instance of exploitation in a long history of foreign attempts at domination. As a result, ShuiFabrics needs to watch its profit levels very carefully so that they can still make a profit but not make so large a profit that they upset the local authorities. ShuiFabrics is providing jobs to 3,000 people in a country where the unemployment rate was estimated to be around 30 percent. This is a significant and positive economic and sociocultural influence. There is also apparently pressure from the local Chinese authorities to keep the labor force at ShuiFabrics at least at its present level. On the other hand, the company’s success gives Rocky River access to a huge Chinese market, cuts labor costs, and helps protect the firm from the uncertainty of U.S.-Chinese textile trade negotiations in which U.S. tariffs and quotas can change at any time.
GLOBE Project dimensions that might help in...